Daily dose of Chart : 09 June 2025

$USOIL & $XLE: Sustainable bull run or short-term bounce?

Recently the commodities and the commodity stocks are having a bull run. Oil being one of the largest categories within the Bloomberg Commodity Index Futures is late to the party after the $GLD rally. In my recent posts I made the case that the $USOIL will remain range bound, and we will see 55 $ in $USOIL. But since then, $USOIL has gone through a small rally with price currently @ 65 $ which has taken it closer to the 0.5 Fib retracement level. $XLE, which represents the S&P500 energy sector stocks, is also attempting to post a rally.

In the short-term markets have diverged from our last predictions. Let’s be honest in the short term such rallies might be accompanied by short covering and the weakness in $DXY is also helping the Energy rally. But now the question comes where do we go from here?

$USOIL and $XLE can have a bull rally due to short covering and momentum pushing it across the 0.5 Fib level. If $USOIL breaks above 0.5 then the next stop 0.618 will take us 80 $ indicating a 25% upside form here. And a similar upside in the $XLE will take us 131 $, which is also 25% up from its current value and the upper range of the upward slopping channel indicative from the chart.

Verdict: Short term probable bounce in $USOIL and $XLE. Long term bearish on $USOIL with target 55–60 $.

$USOIL and $XLE short term gains possible

Please subscribe to get such amazing charts on a daily basis.

If you like the analysis then you can show your love and support @ Buy Me a Coffee

Please follow me at Linkedin, Facebook , BlueSky and X .

Join the Teams Community here.